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Digitization drives the cloud computing industry

2 min. reading
Cloud / 1 July, 2021

Karla García Gil Journalist

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Today, digitization is present in virtually every area of our lives, the process of transforming analog processes and physical objects into digital ones, such as scanning documents or using cloud storage to save important files.

Everything we used to do on paper has now become easier and has driven technologies such as cloud computing. Modern digital solutions tend to displace their older counterparts.

Among the advantages that we can find in digitization and cloud computing are: access to documents from any device simplifies the processing and analysis of documents, is more ecological and economical, is always available, has greater security, protects documents from wear and tear and is a key factor for the customer experience, without forgetting that the future is in digitization.

Due to the above, companies have begun to invest even more in technology, being the cloud the main recipient, with up to 75% of such investments. Undoubtedly, the cloud is taking up more and more capital injection items, if in 2020 it accounted for 9% of the total expenditure made in Information Technology (IT), by 2024 the percentage will exceed 14 percent.

The cloud, from an intangible idea to an entire industrial sector

The cloud, from an intangible idea to an entire industrial sector

Perhaps the most intangible product invented by man, so much so that its name carries it, the cloud, is a market that despite being very large continues to expand and has very important upward projections, around $129,000 million dollars in preliminary revenue in 2020.

A growing market

Digitalization has turned cloud computing into a whole niche of technologies, products and services, giving rise to an industry in which many cloud service providers are competing for market share.

Indeed, the cloud computing market is gigantic. According to data from Synergy Research Group, operators and providers of cloud computing services and infrastructure have reported revenues in excess of 150 billion dollars and there is still enormous room for expansion.

On the other hand, it has been detected that public solutions represent the preference of most companies. According to the RightScale 2019 State of Cloud report, 91% use a public service, 72% opt for private cloud computing and 69% choose hybrid solutions.

Global spending on public cloud computing infrastructure and services is forecast to grow from $229 billion in 2019 to nearly $500 billion by 2023, a doubling. As for public cloud end-user spending, it will grow globally by 18% by this 2021.

Experts say that companies must digitize their entire value chain to face this new era, since in some way digitization is an evolution that has been presented over time.

 

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